FHA Back to Work was announced last month to help you buy a home again, if you had a foreclosure or bankruptcy over a year ago. The current wait times are three years from the date of foreclosure and bankruptcy to be eligible for a new FHA home loan unless you have an extenuating circumstance.

“FHA recognizes the hardships faced by these borrowers, and realizes their credit histories may not fully reflect their true ability to propensity or repay a mortgage,” FHA Commissioner Carol Galante said in the letter.

When FHA Back to Work-Extenuating Circumstances Program was announced there was some excitement from buyers that were affected by the economic downturn aka the Great Recession but that excitement fizzled quickly as many lenders were not equipped or willing to approve the loans although the government (FHA) will guaranty the financing.

Here is why in my humble opnion:

1) The loan requires a manual underwrite which is very complex

2) Once again, loan programs approved by government with no regard how they will actually work in the real world.

3) Divorce is still not considered an extenuating circumstance with this program...(not sure why, the last time I checked finances are one of the top reasons people call it splits)

If you want to buy a home with a FHA Back to Work Loan in Virginia and Maryland we can help.

1.)You need to be able to show a loss of employment, loss of income,or reduced household income reduced by 20% percent or more and/or the ecoonomic event lasted for a period of at least six months.

2) Have restatblished credit of at least one year

Sounds complicated but maybe not...if your household income for example was $100,000 and then it dropped to under $80,000 for at least six months causing you to lose your home, short sale, or file bankruptcy then you may qualify.

Every scenario is different so I encourage you to start an application online at www.queenofmortgages.com to see if we can get FHA Back to Work, working for you.